Employee’s

Compensation Act, 1923

Important Information

• All important provisions and dimensions which are relevant for examination will be
covered.
• Sections and sub-sections are not mentioned in the topic since they are not
relevant for the examination.
 I • Objective
Chronology
II • Definitions
III • Employer’s Liability for Compensation
IV • Amount of Compensation
V • Funeral Expenditure
VI • Compensation When to be Paid?
VII • Penalty for Default
VIII • Distribution of Compensation
IX • Notice and Claim of Compensation
X • Special Provisions
XI • Reference to Commissioners
XII • Time Limit of Disposal of Cases
Objective

Compensation
Certain classes for injury by Employees
of Employers accident
 I • Objective
Chronology
II • Definitions
III • Employer’s Liability for Compensation
IV • Amount of Compensation
V • Funeral Expenditure
VI • Compensation When to be Paid?
VII • Penalty for Default
VIII • Distribution of Compensation
IX • Notice and Claim of Compensation
X • Special Provisions
XI • Reference to Commissioners
XII • Time Limit of Disposal of Cases
Definitions
Railway Servant But does not include any person
working in the capacity of member
Master, seaman or other member of the of the armed forces of Union
crew of a ship

A captain or other member of the crew of

an aircraft
Employed in fire brigade,
Driver, helper, mechanic, cleaner etc. in blasting operation,
connection with motor vehicle
construction of tube-wells
etc. – 48 categories excluding
Employee
A person recruited for work abroad by a
company
sub-categories
Employee
Employed in any such capacity specified in
Schedule II
Definitions

A widow

A minor son and unmarried daughter

(legitimate or adopted)
If wholly dependent on the
earnings of the employee at
the time of his death
A widowed mother

Employee
Dependent
Son or a daughter who has attained
the age of 18 years and who is infirm
Definitions
Any body of persons whether
incorporated or not

Managing Agent of an
employer

Legal representative of a
deceased employer
Employer
Temporary employment –
employer for whom employee
is working or worked
Definitions
Partial
Disablement
E.g. – Cuts in Where disablement –
Temporary nature →
both the reducing earning capacity in
hands ANY employment in which
he was engaged at the time
of accident
Employer
Where disablement –
E.g. - Loss of
Permanent nature →
Thumb
reducing earning capacity in
EVERY employment in
which he was capable of
undertaking at that time.
Total
Disablement
Such disablement –
Whether temporary or
permanent → incapacitates
for ALL WORK which he was
capable of performing at
the time of accident
E.g. – Temporary Total
Disablement → Broken
hand
E.g. – Permanent Total
Disablement → Loss of a
hand and a foot
Definitions

Travelling Allowance

Contribution by employer Wages does not

Any privilege or
towards Pension/Provident
benefit capable of include
Fund
being estimated
in money
Wages Sum paid to cover any special
expenses by the nature of his
employment
 I • Objective
Chronology
II • Definitions
III • Employer’s Liability for Compensation
IV • Amount of Compensation
V • Funeral Expenditure
VI • Compensation When to be Paid?
VII • Penalty for Default
VIII • Distribution of Compensation
IX • Notice and Claim of Compensation
X • Special Provisions
XI • Reference to Commissioners
XII • Time Limit of Disposal of Cases
 Employer’s Liability for Compensation

If personal injury is caused to an employee by accident arising IN THE COURSE OF HIS EMPLOYMENT

Employer shall be liable to pay compensation

Employer If injury does not result in disablement for more than

Shall not be 3 days
liable
Employee under influence of drink

Wages
If there is a willful disobedience of rule or order given
for safety

If there is a willful removal of any safety guard

 I • Objective
Chronology
II • Definitions
III • Employer’s Liability for Compensation
IV • Amount of Compensation
V • Funeral Expenditure
VI • Compensation When to be Paid?
VII • Penalty for Default
VIII • Distribution of Compensation
IX • Notice and Claim of Compensation
X • Special Provisions
XI • Reference to Commissioners
XII • Time Limit of Disposal of Cases
Amount of Compensation

A B C D

Where Where Permanent Where

Where death Permanent Total Partial Temporary
results from Disablement Disablement Disablement
injury results from results from results from
injury injury injury

50% of monthly 60% of monthly Percentage of the Half monthly

wages of deceased wages of injured loss of earning payment
multiplied by multiplied by capacity caused by equivalent to 25%
relevant factor or Wages
relevant factor or that injury of monthly wages
Rs. 120000 Rs. 140000
Whichever is more Whichever is more
Amount of Compensation

Where death
results from
injury

Wages
 I • Objective
Chronology
II • Definitions
III • Employer’s Liability for Compensation
IV • Amount of Compensation
V • Funeral Expenditure
VI • Compensation When to be Paid?
VII • Penalty for Default
VIII • Distribution of Compensation
IX • Notice and Claim of Compensation
X • Special Provisions
XI • Reference to Commissioners
XII • Time Limit of Disposal of Cases
Funeral expenditure

Where
Where death Funeral Expenditure Temporary
results from Disablement
injury results from
injury

If the injury results into death

→ employer shall in addi on to
the compensation deposit with
Wages the COMMISSIONER amount of
2500 as funeral expenditure
 I • Objective
Chronology
II • Definitions
III • Employer’s Liability for Compensation
IV • Amount of Compensation
V • Funeral Expenditure
VI • Compensation When to be Paid?
VII • Penalty for Default
VIII • Distribution of Compensation
IX • Notice and Claim of Compensation
X • Special Provisions
XI • Reference to Commissioners
XII • Time Limit of Disposal of Cases
Compensation when to be paid?

Where death When to pay? Where

Temporary
results from Disablement
injury results from
injury

As soon as it falls due

Wages
 I • Objective
Chronology
II • Definitions
III • Employer’s Liability for Compensation
IV • Amount of Compensation
V • Funeral Expenditure
VI • Compensation When to be Paid?
VII • Penalty for Default
VIII • Distribution of Compensation
IX • Notice and Claim of Compensation
X • Special Provisions
XI • Reference to Commissioners
XII • Time Limit of Disposal of Cases
Penalty for Default

Commissioner shall direct that

Where
Where death employer to pay amount ofTemporary
results from arrears + simple interest @ 12%
Disablement
injury p.a. results from
injury

Wages If there is no justification for delay

then→ amount of arrears +
interest + a sum not exceeding
50% of such amount by way of
penalty
 I • Objective
Chronology
II • Definitions
III • Employer’s Liability for Compensation
IV • Amount of Compensation
V • Funeral Expenditure
VI • Compensation When to be Paid?
VII • Penalty for Default
VIII • Distribution of Compensation
IX • Notice and Claim of Compensation
X • Special Provisions
XI • Reference to Commissioners
XII • Time Limit of Disposal of Cases
Distribution of Compensation

In respect of an injury which has resulted in death

Temporary
Where death Disablement
results from results from
injury injury

By deposit with
Payment of
Shall be made the
Compensation
COMMISSIONER

Wages

Payment of lump sum as compensation to a

women or a person under a legal disability
 I • Objective
Chronology
II • Definitions
III • Employer’s Liability for Compensation
IV • Amount of Compensation
V • Funeral Expenditure
VI • Compensation When to be Paid?
VII • Penalty for Default
VIII • Distribution of Compensation
IX • Notice and Claim of Compensation
X • Special Provisions
XI • Reference to Commissioners
XII • Time Limit of Disposal of Cases
Notice and Claim of Compensation

Notice and Temporary

Where death Claim Disablement
results from results from
injury injury

Commissioner shall not

entertain a claim for
compensation unless the claim
Wages is preferred before him within
TWO YEARS of the occurrence
of the accident or death.
 I • Objective
Chronology
II • Definitions
III • Employer’s Liability for Compensation
IV • Amount of Compensation
V • Funeral Expenditure
VI • Compensation When to be Paid?
VII • Penalty for Default
VIII • Distribution of Compensation
IX • Notice and Claim of Compensation
X • Special Provisions
XI • Reference to Commissioners
XII • Time Limit of Disposal of Cases
 Special Provisions

Captains and Employees

Master and
other crew abroad of
Seaman
members companies

Notice of accident and

On Master of the ship On captain of the aircraft On local agent of the
claim for compensation to company
be served on whom?

Period for claiming Within 1 year after the Within 1 year after the Within 1 year after the
compensation news of death has been news of death has been news of death has been
received by the claimant received by the claimant received by the claimant
and within 18 months and within 18 months
when ship is deemed to be when ship is deemed to be
lost lost
 I • Objective
Chronology
II • Definitions
III • Employer’s Liability for Compensation
IV • Amount of Compensation
V • Funeral Expenditure
VI • Compensation When to be Paid?
VII • Penalty for Default
VIII • Distribution of Compensation
IX • Notice and Claim of Compensation
X • Special Provisions
XI • Reference to Commissioners
XII • Time Limit of Disposal of Cases
 Reference to Commissioners

Duration of Temporary
Where death compensati As to nature
or extent of Disablement
results from on
disablement results from
If anyinjury injury
question
Settled by
arises Amount of
Commissioner
compensa
tion

Wages As to the liability

to pay
compensation
 I • Objective
Chronology
II • Definitions
III • Employer’s Liability for Compensation
IV • Amount of Compensation
V • Funeral Expenditure
VI • Compensation When to be Paid?
VII • Penalty for Default
VIII • Distribution of Compensation
IX • Notice and Claim of Compensation
X • Special Provisions
XI • Reference to Commissioners
XII • Time Limit of Disposal of Cases
 Time Limit of disposal of cases relating to compensation

Where death Within Temporary

From the date of reference
Disablement
Commissioner shall
results from
disposeinjury
of the matter 3 results and
fromintimate the decision
to the employee
injury
relating to compensation months

Wages
 Concept Check

Q. When the compensation under Employees’ Compensation Act, 1923 has to be paid?
A. Within one month of its due date
B. Where
Withindeath
3 months of its due date Where
C. results
Withinfrom
6 months of its due date Temporary
D. As injury
soon as it falls due Disablement
results from
injury
Ans. D

Wages
 Concept Check

Q. How much funeral expenditure has to be deposited by an employer with the Commissioner in
addition to the compensation in case of injury results into death?
A. Where
2000 death Where
B. results
5000 from Temporary
C. 2500 Disablement
injury results from
D. 1500
injury

Ans. C

Wages
 Concept Check

Q. Claim of compensation shall be made before a commissioner within what period of accident or
death?
A. Where
Withindeath
two years of the occurrence of the accident or death Where
B. results
Withinfrom
one year of the occurrence of the accident or death Temporary
C. Within Disablement
injurythree years of the occurrence of the accident or death results from
D. Within four years of the occurrence of the accident or death
injury

Ans. A

Wages